NEW YORK--(BUSINESS WIRE)--Fitch Ratings has published a special report titled, 'MLP Parity Act (Renewables Have Potential to Provide Growth Once Shale Ramps Down)'. Fitch believes the expansion of qualified income sources to include renewable energy offers a new avenue for growth for the existing MLP space. Renewable energy assets offer existing MLPs earnings diversity, as well. This might be especially important for large diversified MLPs in the space, given the challenges of continuing to provide growth in distributions to unitholders.
Renewable energy might make an attractive MLP investment, to the extent it can offer steady revenue backed and a clear growth potential. An investment-grade renewable energy MLP would have to offer diverse, consistent, predictable earnings and cash flow, significant size and scale, and leverage metrics and distribution coverage consistent with similarly rated MLPs. High-yield renewable energy MLPs could be more exposed to earnings and cash flow volatility, and might offer a more flexible distribution policy.
The report, 'MLP Parity Act (Renewables Have Potential to Provide Growth Once Shale Ramps Down)' is available at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: MLP Parity Act (Renewables Have Potential to Provide Growth Once Shale Ramps Down)